Why would it be advantageous to hold managers liable for employment practices?

In some cases where managers are personally named in an employment-related lawsuit, it’s a form of revenge where the employee is trying to get even with a manager that they feel treated them unfairly. Sometimes the causes are economic; with people being laid off, losing their jobs, and struggling financially, they may look for alternate sources of compensation.

There is also a growing trend for plaintiffs’ lawyers to encourage their clients to name managers in the suit to open up more opportunity for discovery. By arguing manager liability, the plaintiff’s bar can require more people to give depositions and with this, there is greater opportunity to dig out potentially useful information.

Some lawyers support extending liability to individuals because they feel that exposure will cause company officials to more carefully weigh the alternatives before acting. It can also pressure the company to settle out of court when current employees are facing personal liability.

What can you do to limit manager liability?

As a business professional – whether you’re an owner, C-level employee, manager, or HR – you need to prepare yourself for this risk. We put together a comprehensive 9-page guide on how to do this called “The 5 Keys to Limiting Your Personal Liability Exposure.” Click the button below to download it.